WILLEMSTAD – Employers in Curaçao who hire young people between the ages of 18 and 29 can now benefit from exemptions on social security contributions, thanks to the Youth Labor Participation Act recently approved by the Council of Ministers on June 25. The legislation is now awaiting formal signature by the governor before coming into force. 

The law, an initiative of MFK parliamentarians, aims to combat youth unemployment by offering financial incentives to companies. Under certain conditions, employers will not be required to pay social premiums when hiring young people without work experience or a completed education. This measure significantly lowers wage costs for employers and is intended to encourage the private sector to take on inexperienced or underqualified youth. 

Tax Relief for Employees 

The law also brings benefits for employees. Young workers hired under the new scheme will be exempt from income tax, allowing them to keep more of their salary. Additionally, overtime hours—up to 520 hours per year—will be tax-free for all workers, both in the private and public sectors. 

The Ministry of Finance is calling on businesses to actively take advantage of the new legislation. 

“This is an investment in the potential of our society,” the ministry stated. 

The Youth Labor Participation Act is seen as a significant step toward addressing long-standing challenges in the local labor market and giving Curaçao’s youth a stronger foothold in the workforce.